Saudi Arabia constitutes the largest auto market in the GCC, accounting for around half of all car imports in the region. While the per capita car ownership in the entire GCC is already elevated due to a general lack of affordable public transportation infrastructure, Saudi Arabia is currently experiencing a unique demographic tailwind for auto demand as the ban on female-driven cars has now been lifted.
In 2020, the Kingdom imported vehicles worth$11.2 billion. Saudi Arabia aims tocut this import volume in halfas part of its Vision 2030 strategy by boosting local production. And it is here that Lucid Group’s first-mover advantage comes into play. While the Kingdom has been in talks with a number of auto manufacturers, Lucid Group is the only major Western EV player that has announced firm plans to establish a dedicatedproduction facilityat King Abdullah Economic City (KAEC). Dubbed the AMP-2, the factory is expected to produce around 155,000 units of electric vehicles annually. The Kingdom has already provided incentives of around $3.2 billion to Lucid Group over a 15-year period to establish this facility.
As a refresher, Saudi Arabia constitutes the largest auto market in the GCC, accounting for around half of all car imports in the region. While the per capita car ownership in the entire GCC is already elevated due to a general lack of affordable public transportation infrastructure, Saudi Arabia is currently experiencing a unique demographic tailwind for auto demand as the ban on female-driven cars has now been lifted.
In 2020, the Kingdom imported vehicles worth$11.2 billion. Saudi Arabia aims tocut this import volume in halfas part of its Vision 2030 strategy by boosting local production. And it is here that Lucid Group’s first-mover advantage comes into play. While the Kingdom has been in talks with a number of auto manufacturers, Lucid Group is the only major Western EV player that has announced firm plans to establish a dedicatedproduction facilityat King Abdullah Economic City (KAEC). Dubbed the AMP-2, the factory is expected to produce around 155,000 units of electric vehicles annually. The Kingdom has already provided incentives of around $3.2 billion to Lucid Group over a 15-year period to establish this facility.
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